This proposal would recognize Wormhole as a Canonical bridge service provider (BSP) for Osmosis.
Canonical bridge providers originally had expectations defined in Proposal 205. This proposal modifies those expectations to facilitate the addition of a second canonical bridge.
First announced at OsmoCon 2023, Wormhole is entering the Cosmos with a new Cosmos SDK chain called Gateway. Built on the Cosmos SDK, Gateway is a fully IBC compatible zone for the Wormhole Messaging protocol. This will enable the Wormhole ecosystem to bring liquidity and developer activity into the Cosmos by seamlessly connecting all Cosmos chains to external chains supported by Wormhole, including Ethereum and Solana.
Wormhole has consistently ranked as best in class in security, with the most recent review carried out by Uniswap unconditionally approving Wormhole. Wormhole messaging is managed by 19 Guardians, who transmit across over 23 chains and would be the validators for Gateway.
Gateway allows Wormhole to add two major security features to the existing Wormhole messaging platform, improving the security for all chains already connected via Wormhole:
First, the Global Accountant allows the open audit and tracking of all assets within the Wormhole ecosystem, ensuring that the wrapped asset and the native asset are always at a 1:1 parity.
Second, the Governor enables the limitation of asset flow to a risk ceiling controlled by Guardians. In the event of a smart contract issue or a blockchain vulnerability, any contagion is prevented.
Gateway will also have zero added fees to bring liquidity into the Cosmos from Wormhole connected chains with minimal cost to users and enable frictionless movement between IBC-enabled chains and those without. The Wormhole ecosystem believes that in order for the interchain to thrive, bridging protocols cannot extract rent, and takes a similar position to IBC as a free-to-use protocol.
Permissionless asset listing will also be available, enabling the rapid proliferation of tokens across the Cosmos, regardless of where they originated.
Enabling Wormhole as a Canonical bridge service provider will initially provide a more familiar user experience for transferring assets from multiple non-EVM chains to Osmosis via the on-chain Guardian set. This includes chains and assets that are currently unavailable on Osmosis such as:
Additional connections via Wormhole Gateway allow Osmosis to further compete with Centralised Exchanges as a premier trading venue with a wide variety of assets. Duplicate connections may also be leveraged to improve the security of canonical assets by diversifying the route assets travel to reach the chain.
The BSP will be integrated into the main Osmosis front-end to provide canonical, unprefixed bridged assets upon arrival onto Osmosis.
In the event of multiple canonical bridge providers, incumbent canonical assets will retain the non-affixed symbol listing, with only the novel assets appearing as the non-affixed version.
I.e., ETH obtained via the incumbent Axelar canonical bridge will remain displayed as ETH, and ETH obtained via Wormhole will be displayed with an affix such as whETH.
SOL obtained via Wormhole will be displayed with no affix as SOL.
In the event that a Wormhole asset has more liquidity on Osmosis than an Axelar asset for a consistent two-week period of time, the affix will change to reflect the higher liquidity asset.
This arrangement is likely temporary, and future proposals will be debated to improve user experience, likely in conjunction with the new Transmuter pool type.
Osmosis commits to prioritizing the assets of the canonical bridge, incentivizing them earlier and more heavily than the comparable assets of non-canonical bridges. Canonical pools should earn substantially more incentives per dollar of liquidity than their counterpart pools under the base incentives model, not including any external incentive matching.
The BSP will work to enable integrations following Osmosis’ goal of achieving deposits and withdrawals from the app.osmosis.zone interface and wallets without requiring pass-through to a bridge-specific UI.
Osmosis DAO and the BSP will work together for mutual benefit without contractual promise or obligation. The Osmosis DAO must ratify any change to the canonical status of the BSP. Any damage for bad behavior by either party will be reputation alone. This disclaimer does not cover specific promises between the BSP and an individual user.
Target On-chain Date: August 07 2023
Wormhole Security: https://wormhole.com/security/
Wormhole Bug Bounty Program: https://wormhole.com/bounty/
Community Links and Social Channels: https://wormhole.com/community/
Wormhole Blog: https://wormhole.com/blog/